Singapore, Brunei Enhance Tax Cooperation

by Mary Swire, Tax-News.com, Hong Kong

17 November 2009

Singapore and Brunei have signed a protocol to incorporate the internationally agreed Organization of Economic Cooperation and Development (OECD) standard for the exchange of information for tax purposes in their existing agreement for the avoidance of double taxation.

The original bilateral double taxation agreement was completed on August 19, 2005. This is the first such protocol Singapore has completed since joining the OECD “white list” of jurisdictions that have substantially implemented the standard.

Lim Hwee Hua, Singapore’s Minister in the Prime Minister's Office, signed the protocol together with Pehin Dato Abd Rahman Ibrahim, Brunei’s Second Finance Minister, in Singapore. Lim Hwee Hua commented: “We are pleased to sign this agreement with Brunei. This agreement marks another significant milestone in the longstanding and special friendship between both countries.”

The protocol will give the tax authorities of both countries a greater ability to exchange taxpayer information and to exchange information on a wider range of taxes. It also provides that neither tax authority can refuse to provide information solely because it does not require the information for its own domestic purposes, or because the information is held by a bank or similar institution.

The protocol will enter into force after Singapore’s legislative amendments to give effect to the internationally agreed standard have been approved by parliament and gazetted into law, and on the thirtieth day following completion of the ratification procedures by both countries.

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